Recovering from damaged credit – Part 2

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

Yesterday, we discussed the need to reestablish lines of credit after financial hardship. You may have a tough time getting a major bank credit card with damaged credit, but there are other options.

If you have some savings, consider a secured credit card. This is a major credit card, like Visa or MasterCard, with the credit limit typically limited to the amount of your savings. That’s fine because the credit limit isn’t terribly important. What is important is that you use the card at least occasionally and keep the balance paid on time.

If you’re planning an appliance or furniture purchase, ask if the store has a credit program. Typically, these loans allow you to pay off the purchase over a fixed term.

If you need a car, a number of creditors specialize in car loans to folks with damaged credit.

Finally, even if you can’t get a major credit card, you might qualify for a department store or gas company credit card.

To qualify you for a mortgage, I want to see at least two or three accounts that have been active for at least 12 months.

And, here’s the most important advice I can give you. Make all your payments on time if you want your credit scores to improve.